Daily Market Bulletin – 4 February 2022

Market Developments

Investors appear upbeat, as solid earnings from the US tech sector helped them overcome Meta's disappointment and monetary tightening prospects.

Amazon reported Q4 Revenue rise to $137.4 billion, in line with its expectations, up 9% year-over-year (y/y). Revenue from its Cloud Service (AWS) surged 40% y/y, to $17.78 billion. Furthermore, the company announced for the first time its Advertising Services Revenue, which impressed with increase of 33% y/y, to $9.716 billion. [1]

The stock rose in extended trading after these results, also helped by the $11.8 billion gain from Amazon's stake in EV maker Rivian, despite rather disappointing guidance of $112- $117 billion in Net Sales for Q1 2022.

Snap's stock rocketed in extended trading, after the company reported its first profitable quarter as public company. Q4 2021 Net Income was $23 million from an around 113 million Loss a year ago, while Revenue increased 42% from a year ago, to roughly $1.3 billion. [2]

Ford's stock dropped after-hours, as its Q4 Revenue of $37.7 billion and Earnings/share of $0.26, missed expectations. For Full 2022, the firm projects earnings of $11.5 - $12.5 billion (adjusted EBIT), up from the $10.0 billion it reported for 2021 [3]. On the EV front, the firm said that its highly anticipated all-electric F-150 pick-up truck, is expected to launch in spring this year. [4]

Trade the News: View our Economic Calendar

The European Central Bank (ECB) did not make any policy changes yesterday and reiterated that interest rates will "remain at their present or lower levels until it sees inflation reaching 2%"[5]. When asked, Ms Lagarde did not rule out rate hikes in 2022, while a few months back she had said that such a move would be unlikely. [6] The Euro rallied, posting yesterday its best day in more than a year against the greenback.

On Wednesday, the Bank of England (BoE) raised interests rates by 25 bps, to 0.50%, with four officials (out of nine), dissenting in favor of a bigger 50 bps hike. The pound reacted higher.

Today, The Reserve Bank of Australia released its Monetary Policy Statement, upgrading its Inflation forecasts and reiterating that "the Board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve". [7]

Main Asia-Pacific stock markets were higher, with Hong Kong returning with profits, whereas mainland China is still out on holiday. European futures are also in good mood. In the FX space, the US Dollar and the JPY Basket, are mixed after Thursday's decline.

Instruments Snapshot

EUR/USD is upbeat and eyes its January high (1.1483), after its best day in more than a year.

GBP/USD shows indecision around 1.3600, following yesterday' rise on BoE rate hike.

USD/JPY is mixed, as its struggles to extend Thursdays rebound beyond 115.00.

USD/CAD trades with positive undertone above 1.2650.

AUD/USD is soft, after another rejection of 0.7150.

NZD/USD is constructive below 0.6700.

GER30 is on the front foot, testing 15,500.

US30 finds support and tries to move past 35,300.

USOIL sets new multi-year highs, as it breaks above 90.50.

XAU/USD advances towards 1,810.

Economic Calendar Picks (GMT)

An intense week concludes with the US Job's report (13:30), following prior disappointing addition of just 199K payrolls.

Canada also releases its employment figures at the same time, while Eurozone Retail Sales are due at 10:00.

See the economic calendar here.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 04 Feb 2022 https://s2.q4cdn.com/299287126/files/doc_financials/2021/q4/business_and_financial_update.pdf

2

Retrieved 04 Feb 2022 https://s25.q4cdn.com/442043304/files/doc_financials/2021/q4/Q4'21-Earnings-Release.pdf

3

Retrieved 04 Feb 2022 https://s23.q4cdn.com/799033206/files/doc_financials/2021/q4/Strategic-Progress-of-Ford-Growth-Plan,-Solid-Financials-in-%e2%80%9921-Position-Company-for-Connected-EV-Leadership-in-2022,-Beyond.pdf

4

Retrieved 04 Feb 2022 https://s23.q4cdn.com/799033206/files/doc_financials/2021/q4/Q4-2021-Corporate-Earnings-Slides.pdf

5

Retrieved 04 Feb 2022 https://www.ecb.europa.eu/press/pr/date/2022/html/ecb.mp220203~90fbe94662.en.html

6

Retrieved 04 Feb 2022 https://www.ecb.europa.eu/press/pressconf/2022/html/ecb.is220203~ca7001dec0.en.html

7

Retrieved 25 Jun 2022 https://www.rba.gov.au/publications/smp/2022/feb/

Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}